What Should you Look Out For In a Health Policy?

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

Never Compare Apples and Oranges

Most of us look at the premium amounts of a health policy and pick up that policy which has the lowest premium. The result of this is a lot of heartburn. This is like comparing apples to oranges rather than apples to apples. The result of this is a disaster. This is similar to the principle of purchasing penny stocks with the hope that it will make one rich. But Does It Do So. It is very rare that this takes place. Most of the time one loses everything .If one has to compare a health policy it is best that one thoroughly studies the policies and picks up the best policy not just by looking at the price but taking all factors into consideration. One must start by reading the fine print carefully. One cannot study an elephant just by looking at its trunk. In a similar manner one has to thoroughly study the health policy and not just the premium.

Check That Maximum Renewable Age

What Is The Use Of A Health Policy If it Does Not Serve You When You Need It The Most?.Always check out the maximum renewal age of that health policy. Always check and see if these policies have a lifetime clause. If not one will have to bear medical bills in his old age which would be sky high. When one purchases a health policy look out to see that ones family is covered for a reasonable length of time. Choose wisely only those policies which have a lifetime renewability clause. Else one might “Buy in Haste and Repent at Leisure”.

It Wasn’t Raining When Noah Built The Ark

This saying basically means “Always Plan Ahead”. One must never wait for the problem to take root before finding a solution. This holds good when one has to decide on the sum assured. This calls for a forward thinking approach. Always choose a sum assured in that family floater policy which is sufficient. If one takes a coverage of INR 2-3 Lakhs on a family floater policy it tends to be insufficient. One has to choose a coverage amount which is sufficient to protect ones family keeping in mind the effects inflation has on those medical bills. A family floater policy takes the age of the senior most beneficiary of the policy when calculating the premium. After ones age crosses 45 years one notices a huge jump in the premium amounts to as high as 40%.Always lock on to the higher levels of coverage at a younger age. Do not try to upgrade these policies at a later age as the premiums tend to be very high at older ages. Medical tests may be required and if ones family members contract a disease in the interim period this disease is excluded for the upgraded amount .Upgrade is as good as purchasing a new policy at an older age paying higher premiums and is certainly not recommended. Always factor in deductions and exclusions while purchasing that health policy.

Study The Rating System Of These Health Policies

Each mediclaim policy has certain in built features which add muscle to it. Certain health policies might exclude preexisting diseases for a period of 4 Years while certain policies might exclude preexisting diseases for a couple of years. The policies which exclude preexisting diseases for a couple of years have a better rating than the four year policy. The health policy might have a sublimit clause which caps or limits the hospital room rent to a particular amount. In the hospital not just the room but also the Doctor’s charges and service charges differ. Different rooms have different charges for doctors and services and this point needs to be noted .One also should study the copayment clause where one has to bear a measure of the cost. This might vary from 10% to 20%.Always choose policies which do not have sub limit clauses on expenditure and on diseases. Even though these health policy premiums might be marginally higher they cover a higher financial risk. The claims settlement record and lifetime renewability clauses are very important in these policies and play a very important role in their ratings. The health policies which provide comprehensive coverage have a higher rating.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief ‘96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund